Stock Screening with RSI, Three Down Sessions, and a Long-Term Average

Summary

This article describes a technical screen that combines a 14-period RSI below 65, three consecutive down sessions, and a prior close above the 250-day moving average. It gives formula and Python examples and suggests ranking qualifying stocks by percentage change. The intended logic mixes recent weakness with a longer-term trend filter, seeking stocks that have pulled back while remaining above a long-term average.

The article provides no backtest, performance statistics, or evidence that the setup predicts gains. Its explanation also contains inconsistencies: it labels an RSI below 65 as oversold, while that threshold alone does not establish oversold conditions, and the example's three-session condition checks for closes above opens rather than down sessions. It acknowledges that the screen omits broader market and fundamental context and that technical indicators can be volatile or lagging. Results would depend on correcting these definitions and testing the rules on appropriate data.

Key ideas

• The proposed screen combines RSI below 65, three consecutive down sessions, and a prior close above the 250-day moving average.
• The long-term average is intended to retain stocks in a broader upward trend despite recent weakness.
• The code example's three-session condition checks for bullish candles, conflicting with the stated down-session rule.
• No performance evidence is given, and the article notes omissions in market and fundamental analysis.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.